VCs investing $500Mn to acquire & build AI-first CPA firms

• In 2023, Thrive Capital—the VC firm behind OpenAI, Databricks, Stripe—quietly backed the launch of Crete Professionals Alliance.
• It’s a roll-up platform that acquires U.S. CPA firms + modernises them with AI at the core.
• Less than two years in, $300M revenue, 900+ staff across 17 offices, with operations expanding into Asia.
• Next, Crete plans to invest $500 million over the next 24 months to acquire accounting firms across the US (Reuters)

What is Crete?

Lately, the U.S. accounting industry has been grappling with several issues:

• Across the U.S., seasoned firm owners are ageing, and inching toward retirement.
• To top it all off, there are not enough young CPAs stepping in to fill the gap.
• Meanwhile, clients are expecting instant insights, tech-enabled services, and always-on advisory.
• And as automation takes over routine compliance work, margins are thinning.

In the midst of this crisis, Jane Sloane and Frank Zhang, Partners at ZBS Partners, saw a golden opportunity: Consolidate strong, local CPA firms under one AI-enabled roof, where founders stay involved, and AI handles the grunt work.

With that in mind, in 2023, Crete Professionals Alliance was born.

The model: Buy, retain, modernize

Crete’s strategy is straightforward—but deeply intentional:

• Acquire majority stakes in well-run local CPA firms
• Keep founders involved with minority ownership and leadership
• Preserve the firm’s local brand and client relationships
• Introduce shared services and AI tools behind the scenes: Workflow automation, Centralised HR, recruiting, and compliance, Financial reporting and audit assist tools

The result?

• Founders stay focused on clients.
• AI handles the grunt work.
• Firms scale—without losing their identity.

Crete is backed by an elite roster of investors, including:

• Thrive Capital (led by Josh Kushner)
• Bessemer Venture Partners
• ZBS Partners (co-founder Jake Sloane’s firm)

Also read: Baker Tilly US & Moss Adams merge in $7B deal…To become 6th largest US CPA Firm!

Built with OpenAI

Crete’s team works directly with OpenAI engineers to build custom tools for:

• Audit test automation

• Memo writing and data mapping

• Financial reporting

• Workflow optimization

“This isn’t about replacing accountants, it’s about letting them do more of what they’re good at—building relationships and solving client problems,” said Jake Sloane, co-founder of Crete, told Reuters.

In fact, Crete isn’t alone

1. Accrual (by General Catalyst)

• Founded by ex-Brex CTO

• Raised $16M to acquire and modernize accounting firms via AI automation.

• Focus: Marc Bhargava (General Catalyst) says the goal is to enable firms to take on 2–3× more clients using AI—not to reduce staff.

2. CRI (Carr, Riggs & Ingram)

• PE-backed regional CPA firm ($500M/year revenue)

• Received AI-focused investment from Centerbridge and Bessemer.

• Targeting $1.2B via automation

3. Xeinadin (UK)

• Merged 122 firms across the UK and Ireland

• Now eyeing a PE deal at £800 million

Also read: Hundred Accounting Firms Merged Overnight – Now Eyeing £800Mn PE Deal

Does Crete have an offshore unit in India?

Yes. Crete Professionals Alliance does have a presence in India.

It has established a subsidiary based in Gurugram.

The subsidiary supports U.S. CPA roll-up operations, focusing on delivery, support services, and HR functions.

From HR and Senior Tax roles to Client Accounting Prep, multiple positions are open across locations like Gurugram, Hyderabad, Bengaluru, and Delhi NCR.

Indian firms should be watching closely

Because what’s happening in the U.S. today… will occur in India tomorrow.

This model—AI-first, founder-led, services scaled via shared ops—is highly relevant to India’s own fragmented mid-market.

The trends are already here:

• Succession gaps

• Underutilized tech

• Compliance price pressure

• Demand for advisory-led services

Also, as U.S. CPA Firms consolidate with AI, India becomes the backbone!

Here’s how India (might) fit into Crete’s strategy:

• Captive delivery units directly owned by Crete
• Strategic partnerships with Indian outsourcing firms
• Potential acquisitions of Indian firms already serving U.S. clients

As U.S. firms rebuild with AI, Indian talent has a once-in-a-lifetime chance to shape the future of global accounting.

Wrapping up…

If you’re a mid-sized CA firm in India, an outsourcing partner to U.S. firms, or a founder building the next wave of accounting firms—this is the playbook to study.

The question is: Will you watch the shift… or be part of it?

FAQs

What is Consolidation in the Accounting Industry?

The combining of multiple independent firms into one larger entity—often via roll-ups or mergers—to create scale, succession pathways, and stronger service offerings.

Benefits of consolidation

• Economies of scale: Shared tech, HR, compliance, and admin
• Enhanced service offerings: Tax, audit, advisory, and AI tools
• Succession planning: Exit paths for aging founders
• Client access: Larger geographic and industry reach

What is an AI‑First roll-up strategy?

A strategy where VC/PE firms acquire traditional firms, centralize their ops, and embed AI across processes—while keeping founder DNA intact.

Why it matters

• Rapid client reach with minimal overhead
• Automates up to 100% of routine accounting tasks
• Empowers accountants to focus on advisory and strategy